If you are looking to apply for a payday loan, there are lot of direct lenders to choose from, so how do you know if they are any different? This is where new lenders come in. New firms are usually looking to be more competitive and are often able to provide much lower rates than the other lenders already out there.
New payday lenders are regulated by the Financial Conduct Authority and this means that they have to fulfil a certain criterion to provide and service loans in the UK. Therefore, companies that start trading in 2019 must be very transparent with their rates and the products that they offer. This will be clearly presented to you through repayment examples and clear indications of the cost before or during the application process.
With new loan companies comes new technology, which are able to perform faster applications, quick loans transferred to your account and also do more computer-based underwriting. This will assist those looking for fast funds or who may have been turned down due to bad credit. A new, more technology-based lender may have a better indication as to whether you will be able to repay your loan on time, and improve your overall chance of approval.
Variety of products
Moving away from the traditional payday loan product of 14 to 30 days, the more recent lenders we feature are able to offer more flexible products, such as instalment loans repaid over 3 to 12 months, and also those with a guarantor, if you need some extra security. New products should be able to give you more choice and be more accommodating in terms of repayment dates and poor credit histories.